Objectives and Strategies of LSOs

Objectives

An objective refers to a desired goal, outcome or specific result that an organisation intends to achieve. Large-scale organisations set objectives so as they are able gradually improve their performance and have a benchmark to work towards.

SMART Principle

For an objective to be effective it should meet several criteria specifically following the SMART principle. The SMART principle refers to ensuring that objectives are specific, measurable, attainable, realistic and time-bound.

A Specific Goal is distinct and defines as much of the goal as possible and contains no ambiguous language. A Measurable goal ensures that a form of measurement is present, which will gives the feedback and allows the organisation to know when the goal has been completed. An attainable goal is one that it is possible for the organisation to achieve. A realistic goal is challenging for an organisation to achieve within the given timeframe but is still attainable. A Time-Bound goal involves a time-frame being set that is aggressive yet realistic.

Effective Objective Criteria

It is important for goals and objectives to be appropriately challenging, whilst still realistic so that employees are still motivated to work towards achieving them. It is also essential that the objective to be achieved is measurable, so that the organisation can determine the progress that has been made towards achieving these goals and what still needs to be done.

Types of Objectives

  • Financial objectives are typically used by Companies, as their main objective is to make a profit.
    • Examples of financial objectives can include increasing revenue, percentage of market share, or decreases costs.
  • Social objectives are mainly used by Not-for-Profit Organisations as they focus on targeting social issues prevalent in the community. Corporations and Companies also can create social objectives when addressing their Ethical and Social Responsibility.
    • Examples of social objectives can include improving a social issue and also increasing community participation
  • Performance objectives can be used by all types of organisation and are typically related to the Operations Management Function.
    • Examples of performance objectives could include reducing wastage of the organisation, increasing effectiveness and efficiency and also decreasing defects.   

Strategies

Strategies refer to the steps that an organisation is going to undertake in an attempt to achieve this objective. It is the outline of what the organisation is doing to achieve the specific objective.

A successful LSO ensures that they have a range of different strategies to achieve their objectives. It is essential for LSOs to ensure that their objectives and strategies are linked.

The key difference between objectives and strategies is that objectives are what the organisation wants to achieve, whereas strategies are how the organisation goes about achieving its objectives.

Vision, Mission and Values Statements

It is the responsibility of the Top Level Management of an LSO to create the organisation’s vision, mission and values statement.

  • A Mission Statement expresses why an organisation exists, its purpose and how it will operate.
  • A Vision Statement outlines what the organisation aspires to become.
  • A Values Statement outlines what is the most important to the organisation in terms of values and ethics.

Purpose

The main purpose of the mission, value, and vision statements of an organisation is to guide and direct the organisation’s owners, managers and employees. These statements are usually published to the wider community, outside the organisation. Organisations can do this by publishing in annual reports and on their websites.